Quick Updates
ADBE Volatility Straddle - P&L currently showing a small loss for the nearer-term options, while the long dated Jan 09 42.5 Straddle has a small profit. ADBE has not yet experienced a significant increase in IV:AMZN Volatility Straddle - IV has not started to increase yet so I am still in a good position and continue to wait till the middle of June to purchase an ATM Straddle:
Over the weekend, I did a lot of research on selling a Russel 2008 Iron Condor. An Iron Condor is basically made up of two vertical spreads: a Bull Put and a Bear Call. The particular strikes I'm interested in are the 790/800 Bear Call Spread (sell the 790 call, cover myself with an 800) and the 690/680 Bull Put Spread (Sell 690 put, buy the 680 put).
With RUT closing out Friday (after the DOW dropped 400 points(!)) at 740, this particular spread would allow for a movement of plus or minus 6.8%. It would reach maximum profit of 1.05 per contract if upon expiration, the RUT closes anywhere between 691 and 789. The margin requirement for this trade is 8.95 per contract, resulting in a return of 11.7% over 2 weeks. I'm going to be looking at what the market does on Monday, given Friday's activity and look to open up this position.
Cheers.
No comments:
Post a Comment